Which of the following would be a normative economic statement?
a. The unemployment rate rose to 6.3 percent, which is the highest level in the past five years
b. The trade deficit grew by $300 million last month
c. The government should raise taxes to bring in $10 billion more in revenue next year
d. The economy grew at a 4 percent rate last year
c. The government should raise taxes to bring in $10 billion more in revenue next year
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Under Obamacare, residents who do not have health insurance that meets certain basic requirements are subject to a tax penalty
Indicate whether the statement is true or false
To have an effective price support program, the government must
i. isolate the domestic market from the world market. ii. pay the farmers a subsidy. iii. introduce a price floor. A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
A production possibilities frontier with a bowed-outward shape indicates
A) the possibility of inefficient production. B) increasing opportunity costs as more and more of one good is produced. C) decreasing opportunity costs as more and more of one good is produced. D) constant opportunity costs as more and more of one good is produced.
For a collective consumption good, market demand is found by ______
a. horizontally summing individual demand curves b. vertically summing individual demand curves c. estimating a market demand function based on survey data d. estimating a market demand function based on data from similar goods having market pricing